It seems Oculus/Samsung have bricked and turned the S7 into a ransomware again. While in developer mode, it will not allow to enter into VR Apps while docked into GearVR.
It will ask to connect to internet instead.
This type of forced update "offer" wont stop until the vendor is sued, and the managers are sued, succefully?
workaround: Reboot, keep it undocked a bit longer, and then insert into GearVR to defeat the nagware.